Is it safe to buy ReneSola stock as shares bounce back 2% ahead of earnings?
- ReneSola shares on Monday advanced by more than 2%.
- The stock plunged more than 23% last week.
- The company report will report its FQ3 results Tuesday after markets close.
On Monday ReneSola Ltd (LON:SOLA) shares advanced by more than 2% to trim last week’s landslide losses. The stock plummeted by more than 23% in the previous five days after Grizzly Research issued a short call.
The firm forecasts 40% downside potential, saying ReneSola is drastically overrepresenting its project pipeline, also adding the legal difficulties facing its biggest shareholder could cause major issues for shareholders.
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ReneSola announced a $50 million share-buyback program on Monday in a bid to boost the stock price. As a result, the stock realised a marginal 2% rebound.
The authorization is effective immediately and has no expiry date.
The stock has plummeted more than 82% since spiking by more than 162% at the start of the year. It now has a net year-to-date decline of about 58%.
Should you bet on ReneSola’s growth?
From an investment perspective, ReneSola shares trade at a reasonable forward P/E ratio of about 16.19, making it an attractive option for value investors.
Moreover, analysts expect its EPS to grow by more than 125% this year before rising by a further 51.64% next year.
Therefore, the stock could be an exciting option for growth investors.
Technically, ReneSola shares seem to be trading within a descending channel formation in the intraday chart.
As a result, the stock has plunged into oversold conditions, creating an opportunity to buy.
Therefore, investors could target rebounds at about $6.30, or higher at $7.33, while $4.53 and $3.43 are crucial support zones.
In summary, although analysts still question ReneSola’s valuation of its pipeline, the recent pullback could trigger a technical rebound.
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